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Correlation: 1
So far, the Fed's QuEnfinity has lifted cross asset-class correlation back up to near 1.00 and while stocks look marginally rich to their credit, rate, vol, precious metal, FX, and commodity cousins, its barely notable. The inexorable draw of 'risk-on' has once again dominated the smartest-guys-in-the-room's minds - and while calling a turn here is foolish, this level of systemic move often ends badly/quickly as one leg of the multi-factor correlation breaks down (keep an eye on 2s10s30s).
Stocks (SPY - left; and ES - right) are very modestly rich to risk-assets but pretty much everything moving in sync...
as correlation soars...
Charts: Capital Context
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Massive debt: check
Looming hyperinflation: check
Stagnant economy: check
If I remember my history lessons correctly, war comes next.
Hyperinflation only for stupid shit like food and energy. Who needs those when the new Iphone just came out?
Good point. Thank goodness they strip those out from the Core Inflation numbers, who needs food and energy anyway? Do you realize how much easier that bigger iPhone screen will make playing Robot Unicorn Attack? I better buy my daughter two of them, just in case one runs out of batteries.
Damn iGadget Deflation anyway. To the walls boys, we must print, print, print, to scare away the Deflation Monster.
+1
And by my count, in roughly 54 days we can officially start that countdown. Not before.
Fucking craziness.
I hear you can get a great deal on a time share in Tehran these days.
The groundwork for the next US attack was laid this week. We may see action sooner.
I would be really surpris-....
Ahh, nothing surprises me anymore.
Which war exactly?
Support the overthrow of the Syrian government?
Attack the Libyan war mongering ambassador killers?
Sink Chinese aspirations in the South China sea?
Bomb Iran back into the stone age?
Do the nasty in Yemen?
Unseat the Muslim Bros in Egypt?
Try and tame AfPak?
Go dance with Putin in Georgia Round II?
So many conflicts, so little time.
Ah yer nitpicking now.
:)
Let's just say I'm postponing my Iranian beach vacation beyond the halflife of Uranium 235.
Can you say WW3? How else did everyone think the US dollar was going to lose it's reserve status... certainly not without a fight.
lose keep
edit* strikethrough doesn't work.
He's Jones'n for that second nobel peace prize!
Long Gas Station numbers 5-9
Are they gonna slam this thing ?
Bob Janjuah still going to go risk-off?
http://www.zerohedge.com/news/bob-janjuah-goes-risk-effective-immediatel...
War or other event which decreases the population and destroys infrastructure. Then you need to rebuild infrastructure with a smaller workforce and you get prosperity.
Poor Bernank. No strong $ or Gold smackdown for your speech ?
Go short tyler, i've got your back (muttley snigger).
I continue to buy gold. Remain big into raw land. Looking into some comodities, probably as a comprehensive fund.
Still have a bit of cash laying around, doing nothing. Have kept it for recessionary needs, but after today, inflation seems to now be a more likely occurence in a shorter time frame than I previously expected.
So, thinking about TIPS and wondering if TIPS are better than cash at this point.
many TIPS already have a negative yield. If you can front-run the stupidy, its a good trade, otherwise you are paying Uncle SAM to lose your money. Welcome to the world of financial repression on steroids. Get physical, stay in cash.